For those you aren’t aware of the importance of a credit score, let me tell you this, it is a vital component of the lives of people in the US. If you have a bad credit score, you don’t get a loan, job, mortgage, etc. And living without a loan is something that we, the population of America, have forgotten for many ages.
Consequently, it’s important to have and maintain a good credit score range to lead a happy life. Here are few do’s and don’ts to improve your score:
- Do pay on time:
If you pay your bills late, it affects your credit score. Even a single late payment causes the score to drop. If you have been missing payments regularly, don’t fret. Start making payments on time.
- Do keep your credit balance low:
Do remember to keep the credit balance low. Utilizing the full balance of your card reduces the score radically. And if you do utilize it, make sure you pay off all the credit on the same month.
- Do keep a regular check on your credit score:
Keeping a track of your credit score range regularly will help you to know your financial standing. Learn how it changes, what factors affect the score. A constant check will also avoid any chances of errors.
- Don’t have many credit accounts
If you can’t repay all of them quickly, don’t unnecessarily open up credit accounts or take many credit cards. Having a single card is a protection against emergency. However, having dozens of them will encourage you to spend more and eventually, sink deep in the debt hole.
- Don’t transfer balances
Zero percent transfer cards a good if you have no other option left. However, if you can gradually repay the balance, do not transfer balances. It will help you to reveal your inability to repay debt.
- Don’t use any line of credit, especially if you haven’t borrowed in past
If you use many lines of credit at a time, creditors may feel you are depended on loans to meet your expenses, even if your score is at par with the standards. This may be risky for you.
If you want to maintain a good credit score range and build a good financial reputation, you should follow these set of do’s and don’ts. Remember, credit score reveals a financial personality of an individual.
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